Former Fontainebleau On LV Strip Sold, Completion Expected
The Fontainebleau in Las Vegas in partial completion in 2010. Investors recently bought the property and are expected to complete construction and open the property but have yet to release details. Image by Neaco and used under the terms of a creative commons license.
Although no construction permits have been filed, reviving the former Fontainebleau project on the Las Vegas Strip would be welcome news, according to one local government official.
Clark County Commissioner Chris Giunchigliani, whose district includes the Fontainebleau, recently said that she thinks the new owners will continue to envision it as a high-end property, while keeping the casino and hotel.
Developers may look at the pool area and convert it to more of a club, Giunchigliani said, adding that “hotel rooms have been well-maintained.”
New York developer Steve Witkoff and Miami-based investment firm New Valley LLC on Aug. 29 announced their purchase of the property at 2755 Las Vegas Blvd. South for $600 million.
With nearly 4,000 rooms, the 68-story development sits on a 27-acre parcel near the Strip’s north end.
According to a press release, Witkoff described the property as “one of the best physical assets in the country, which is one of the reasons we were attracted to it.”
Witkoff added the resort is “ideally located” on the Strip and is near the Las Vegas Convention Center, which is now undergoing a $1.4 billion expansion and renovation.
Witkoff spent four months examining the former Fontainebleau and resort market prior to the purchase, according to the news release.
Neither Witkoff nor New Valley offered further details on what they plan to do with the property.
Slated for a 2009 opening, the Fontainebleau project -- then owned by Fontainebleau Resorts LLC-- went bankrupt after the 2008 recession hit. In 2010, noted investor Carl Icahn purchased the property for around $150 million.
